Inside Zapp’s Plan to Make EV 2-Wheeler a Global Brand
London-based electric vehicle startup, Zapp, is looking to turn its two-wheeler brand into a global company. According to Yahoo Finance, India is among the launchpads of Zapp’s EV expansion plan.
The startup will unveil its initial product, the i300 urban electric two-wheeler, in the U.K. next month before moving to Thailand.
Massive Market
Zapp’s EV global expansion plan includes testing its i300 model in India. The EV company views India as a huge market that provides an environment for testing its global expansion strategy.
The listed company advanced plans for India after noting its potential. As the most populous country in the world, India registers millions in two wheeler sales each year. It also ranks second among countries that manufacture the highest number of two-wheelers globally after China.
“We thought India would be phase two for us when we did our research a few years ago, but we made a decision earlier this year that it can’t wait,” Zapp Founder and CEO ,Swin Chatsuwan said.
Local Contracts
Zapp EV India expansion plan includes finding a local manufacturer and marketer of its electric bike products. The company identified Indian-based electric two wheeler manufacturer, Bounce Electric 1 as its local contractor. Bounce Electric 1 will make and sell i300 two-wheelers in India.
Once Zapp completes the homologation process, it will commence sales in 2025. The EV company is targeting an annual production capacity of 5,000 units at the minimum and 25,000 units by the year 2026.
Royal Enfield Model
According to Chatsuwan, India’s market consumes both high-speed and heavy-weight vehicles. Last year, a total of 17 million two-wheelers were sold in India. Out of these, 2.8 million were high-speed vehicles while 36% were heavy-weight, high-speed cruiser bikes from Royal Enfield.
Zapp’s EV plan will replicate the success of Royal Enfield through a step-through model that the company launched in 2018.
“We’re not trying to conquer the world. We’re not trying to take half Royal Enfield’s market share and sell 500,000 bikes in India. We’re not. We would see that our quality and performance peer is BMW, particularly their CE 02 and CE 04 step-through electric scooters,” Chatsuwan said.
Market Share
Launching the i300 electric two-wheeler in India will enable Zapp to expand its 60 million units annual total addressable market by 25%. Already, the company saw its addressable market reach 30 million per year following its first phase of Indian market entry.
According to Chatsuwan, the early launch i300 in the Asian country will give Zapp a better understanding of India’s supply chain. With this knowledge, the company will improve exports to the global market over time.
When it comes to pricing, i300 will be more costly than Indian manufactured electric two wheelers whose price ranges between $1,000 and $1,800. In Europe, Zapp’s electric two-wheeler will be introduced at a base price of $7,590. The company is yet to decide on pricing for the Indian market. However, Chatsuwan says the price won’t exceed a million rupees.
Future Expansion
Zapp plans to add personalization accessories and options in its i300 electric two-wheelers including a fast charger, hidden storage and color customization features. The company is focused on becoming a complete motorcycle company.
“We’re not a one-hit wonder. We want to show the world that we’re a complete motorcycle company, but let’s begin with executing the first product first,” Chatsuwan added.
In phase two of Zapp EV expansion plan, the company will enter different markets including Italy, Indonesia, Spain, and Vietnam.
